Attorney general probing banks over securities: New York’s attorney general has launched an investigation into eight banks to determine whether they misled ratings agencies about mortgage securities, according to a person familiar with the inquiry. Attorney General Andrew Cuomo is trying to figure out if banks provided the agencies with false information in order to get better ratings on the risky securities, said the person, who asked not to be identified because the investigation has not been made public. Cuomo’s office is investigating Goldman Sachs Group Inc., Morgan Stanley, UBS AG, Citigroup Inc., Credit Suisse, Deutsche Bank, Credit Agricole and Merrill Lynch, which is now part of Bank of America Corp.

Stocks

Stocks fall after drop in retail, financial shares: A late-day slide left stocks lower Thursday following a disappointing forecast from department store chain Kohl’s and a drop in financial shares. The Dow Jones industrial average ended down about 114 points after shooting up by nearly 149 on Wednesday. Stocks mostly made modest moves for much of Thursday’s trading but fell in the final hour. The drop signaled that traders remain on edge and not sure about the market’s direction.

Economy

New claims for unemployment insurance down: New claims for unemployment benefits dipped for the fourth straight week, a sign the job market is improving at a slow but steady pace. Employers, encouraged by a recovering economy, are hiring again. But they are not doing it at the level needed to reduce the jobless rate. The Labor Department said Thursday that initial claims dropped last week by 4,000 to a seasonally adjusted 444,000. That’s slightly above analysts’ estimates, according to Thomson Reuters. The previous week’s total was revised up to 448,000.

Retail

Kohl’s net income rises on higher revenue: Department store operator Kohl’s Corp.’s first-quarter net income rose 45 percent as shoppers spent more at its stores, particularly for shoes and home goods. But the company’s CEO said that consumers’ buying remains below what it was before the Great Recession. The retailer raised its full-year guidance, but even the higher forecast for the second quarter and full year were short of analysts’ expectations. Its shares fell $3.34, or 5.8 percent, to close at $53.81. Kohl’s said its net income rose to $199 million, or 64 cents per share, in the three months ended May 1, up from $137 million, or 45 cents per share, a year ago.